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Unemployment Taxes Projected to Decrease in 2018, Thanks to Reforms Pushed by the Chamber

January 29, 2018

Good News! Michigan businesses are expected to see an unemployment insurance (UI) tax reduction in 2018, thanks to comprehensive reforms pushed by the Michigan Chamber in 2011. The state estimates unemployment insurance tax rates will decrease by an average of 4.5 percent in 2018. Further tax relief is expected in July of 2020.

During the last economic downturn, Michigan’s UI system amassed a nearly $4 billion debt with the federal government to pay benefits. The state bonded for this debt, which led to employers needing to shoulder higher UI taxes, or an “Obligation Assessment,” to repay the debt services on the bond. The 10-bond was expected to be repaid in 2022 but is now expected to be repaid much earlier, allowing the state to remove the Obligation Assessment from employers’ tax bills in 2020.

Join a Policy Committee

Did you know?

As a member-driven, policy-focused statewide business advocacy organization, the Michigan Chamber relies on input and recommendations from its three member committees for the development of official chamber policy relating to:

Energy & the Environment

Health and Human Resources

Taxation

These three committees meet four times per year at the Michigan Chamber's headquarters in Lansing.

Chamber policy committees play an integral role in the development of the Chamber's legislative priorities, which are intended to focus policymakers' attention on the economic challenges facing Michigan and to offer pro-jobs solutions.